That's not the way WallyWorld phrased it, of course.
After suffering seven straight quarters of losses, today the merchandise giant Wal-Mart will announce that it is “going back to basics,” ending its era of high-end organic foods, going “green,” and the remainder of its appeal to the upscale market. Next month the company will launch an “It’s Back” campaign to woo the millions of customers who have fled the store. They will be bringing back “heritage” products, like inexpensive jeans and sweatpants.
Usually, adding higher-margin products increases profit. The exception: when you have NO remaining customers.
Competition from Aldi on low prices for groceries might have factored into it also. Aldi is similar to what Pick 'n Save started out as 30-40 years ago - bare bones, low prices, do your own bagging.
ReplyDeleteOf course back then too I used to buy Nike tennis shoes because they were...cheap!